W. Va. Code R. § 112-10-2

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 112-10-2 - Definitions

For the purpose of this rule, unless a different meaning is clearly required by the context:

2.1 "Lease" means the definition as stated by the Government Accounting Standards Board (GASB), which states: a lease is a contract that conveys control of the right to use another entity's nonfinancial asset as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this definition should be accounted for under the lease guidance.

2.2. "Certificates of participation" means a method of financing or refinancing the purchase of assets, involving a lease in which certificates are issued to evidence the holders' rights and interest in lease payments.

2.3. "Division" means the Division of Debt Management in the office of the State Treasurer.

2.4. "General obligation bonds" means bonds backed by the full faith and credit and the taxing power of the issuer. The issuance of general obligation bonds by the state requires a constitutional amendment approved by two-thirds of both houses of the Legislature and a majority vote of qualified voters.

2.5. "Installment purchase" means a lease agreement, in excess of one year, providing for the application of payments toward the purchase price of the assets financed and for which the payments are expressly subject to legislative appropriation.

2.6. "Lease purchase" means a lease agreement, in excess of one year, providing for the application of payments, in whole or in part, toward the purchase price for the assets financed or providing a specified purchase option price for the assets financed, and which payments are subject to legislative appropriation.

2.7. "Mortgage" means a debt instrument for financing the purchase of real property by which the borrower gives the lender a lien on the property as security for the repayment of the loan.

2.8. "Revenue bonds and notes" means bonds or notes issued to finance a project from which a revenue stream is created and dedicated toward debt service payments.

2.9. "State" means the State of West Virginia.

2.10. "Treasurer" means the West Virginia State Treasurer or his or her designee.

W. Va. Code R. § 112-10-2